Tata Motors share price extends losses to fourth straight session on weak JLR outlook. Buy, sell or hold?

Tata Motors share price extended losses to the fourth straight session on Tuesday, following Jaguar Land Rover's (JLR) revision of its profit forecasts for the year amid concerns over the effects of President Donald Trump’s tariffs and increased global uncertainty.

JLR, owned by Tata, anticipates margins on underlying profits to be between 5% and 7% for the current financial year. Previously, it had indicated a target of 10% for the year, while it recorded an underlying profit margin of 8.5% for the fiscal year ending in March.

Additionally, the free cash flow for this financial year is anticipated to be nearly zero because of financial challenges, as stated by the company. Executives emphasised their continued dedication to long-term investment strategies and remain confident in achieving a “resilient financial performance” despite broader uncertainties, as per reports.

Brokerages cut Tata Motors' earnings forecast

Following this, several brokerages described the JLR margin forecast for fiscal 2026 as lower than what the market anticipated.

Kotak Institutional Equities, in its report, mentioned that it has reduced its consolidated EPS forecasts for FY2026-27 by 3-9%, influenced by lower EBIT margin projections for the JLR segment.

The brokerage's estimated fair value stays unchanged at ₹600. It anticipates that the short term will continue to be difficult for the JLR segment, due to subdued demand patterns in China and tariff implications in the US. Moreover, the loss of market share in the domestic CV and PV sectors remains a significant concern. The domestic brokerage house has retained a SELL rating on the Tata Group stock.

Motilal Oswal Financial Services noted that their projections were already below the consensus estimates. They have lowered their FY26 EBIT margin forecast for JLR to 6% from the previous 6.9%, resulting in a 10% decrease in their FY26 earnings projections.

“We have maintained our FY27 estimates at this stage. Given the multiple headwinds highlighted above, we reiterate Neutral with FY27E SOTP-based target price of ₹690,” said the brokerage.

Tata Motors share price

Tata Motors share price today slipped 1.4%, with the Tata Group stock touching an intraday low of ₹677 per share. Over the last week, the stock has declined by 5.36%. It has increased by 3.63% in the last quarter but has decreased by 31.62% over the past year.

According to Rajesh Bhosale, Equity Technical and Derivative Analyst at Angel One, Tata Motors share price has been under pressure since the last four sessions, losing 7.5%. “The momentum of the sell-off has increased in the last two sessions, with prices breaking below 20-DEMA and the recent swing low. In the near term, the momentum may remain under pressure until any positive signs; the next key support is at ₹660 - 640, coinciding with key retracement levels. On the flip side, ₹710 is immediate resistance,” Bhosale added.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.